At 2:00 a.m. we had UK Nationwide House Prices m/m. It came out too
close to expectations to enter a trade. It also seems the number was
leaked because the price started moving significantly before the news.
If the price moves before the news, you have to treat that point as a
starting point so the price may retrace to that point.

At 8:30 a.m. we had US GDP Annualized which came out much higher than
expected. USD/JPY moved by only 25 pips but on EUR/USD or GBP/USD we had
45 to 50 pips move. We also saw over 100% retracements.

Let's talk about Friday.

1. Friday, August 29th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have Canadian GDP m/m coming out as well as Raw
Material Index and some other reports out of Canada. We will also have
a few U.S. reports such as U.S. Core PCE or U.S. Personal Income. For
the afterspike trading: focus first on the U.S. reports. Personal Income
is expected to come out at -0.2%, by the way. If Personal Income comes
out at -0.7% and Personal Spending comes out at -0.3%, I would sell USD/JPY
or buy EUR/USD, and look for 30 pips or so. If either of them comes out
lower by 1.0 and the other one would not conflict, this would also be
a sell signal on USD/JPY or buy on EUR/USD. If U.S. Personal Income comes
out at 0.3% and Personal Spending comes out at 0.7%, this would be buy
on USD/JPY or sell on EUR/USD. Or, if either comes out higher by 1.0,
and the other one is not conflicting, this should work as well. U.S.
Core PCE is not a big deal.

2. Friday, August 29th, 2008 (8:30 a.m. New York Time) CANADA
For the Canadian GDP: 0.5 deviation on the GDP Annualized or 0.2 deviation
on GDP m/m should be enough to move EUR/CAD pretty well. Raw Material index,
when conflicting, can be a problem but other than that, this should be
tradable if you have SNW software. Keep in mind that we might see a very
fast retracement and Canadian GDP is not as hot as it used to be but
I still think this is worthy to give a try (Sir Pips does not agree, well,
time will show...). I cannot access FPA Calendar now to give you a few
examples, but I do remember that USD/CAD may not move at all whereas
EUR/USD can move pretty well. At least this was a case last month,
I believe. I would actually prefer to check charts to make sure 0.2 on
m/m is not too risky to trade but I am not able to do that now. Keep in
mind that EUR/CAD may and usually have higher spread than USD/CAD but
I would really forget about USD/CAD here. Higher GDP is good for the
Canadian dollar so it would be sell on EUR/CAD, and lower GDP is bad
for the Canadian dollar and this would be a buy signal on EUR/CAD. Too
\bad I cannot post this on FPA forum so I am not leaving specific triggers
as I need to work more on this, and I am not able to update emails like
I would be able to update a post on FPA website. If you want to play safe,
you may try 0.3 deviation on GDP m/m and 0.2 trigger would be for more
aggressive traders if they can get fast, know how to exit fast and have
a reasonable spread on EUR/CAD.

3. Friday, August 29th, 2008 (9:42 a.m. New York Time) USA
At 9:42 we will have Chicago PMI. You can trade it only if you are able
to get the number at 9:42 a.m., NOT 9:45 a.m. If it comes out at 52.0 or
higher, it should be OK to sell GBP/USD or EUR/USD and look for 30 pips
move. If it comes out at 47.9 or lower, this should be OK to buy EUR/USD
or GDP/USD. I would personally want to see at least 3 deviation as I saw
quite high spreads on previous releases and I cannot hook up SNW with that.

That would be all for Monday.

Please also wath the video: Review/Preview + Outlook in one combo video.

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-Sir Pipsalot & Crazy Cat

The video with the signal is recorded by Sir Pipsalot.
For your convenience, this text is written based on the video by Crazy Cat

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